Traditional finance has taught us that having a savings account with a bank is one of the surefire ways towards financial stability. Money that we could set aside over time and earn an APY of 0.01% was said to be the key to wealth and stability. Institutions such as banks make money off the money they lend out that is given to them by the average person. Yet, the average person is only to be rewarded by receiving not even a hundredth of a percent of the profit the bank is making off that person's money.
This is where a platform like Nexo comes in. Nexo is the next-generation crypto banking platform that allows you to earn and get paid interest daily. It also allows you to take out to collateralize your crypto and borrow instantly with their crypto credit lines. Here, we take a closer look at the platform in our Nexo review.
Nexo, founded in 2018 by Antoni Trenchev, Kosta Kantchev, and Georgi Shulev, has its headquarters in London and is available worldwide in 200+ jurisdictions. The company behind Nexo is Credissimo, which has a history of 12+ years as a lending platform in the European market.
Nexo’s vision is to be the pioneer of a new digital financial system where all assets are tokenized on-chain and people have a seamless, secure, and instant way of transferring money and managing funds.
Nexo is best for those who want their foot out the door in the crypto world and are interested in a platform that makes their bank account look like a thing of the past with easy passive income.
How does Nexo work?
Nexo is simple to set up, just start on the main page and click “Create Account.” You are then brought to a sign-up page.
You are then required to verify your account through your email. Once you do that and click the link, you are set to go.
From there you have everything you need to start right away. You can immediately start earning interest by clicking “Top Up” in the asset of your choosing and then when you deposit your credit line will be reflected by the asset as well.
How much does Nexo cost?
Nexo is a completely free-to-use platform. All of Nexo’s features – Nexo Earn, Nexo Borrow, and Nexo Card all have zero fees to get started and no features hidden behind a paywall. Nexo has both a free, user-friendly desktop and mobile version.
Nexo Earn is the most significant feature from the Nexo platform that allows you to earn up to 8% APR on your crypto, up to 12% APR on stablecoins, and up to 12% APR on fiat currencies that also pays you out daily.
This earn account currently supports 11 crypto assets such as your typical Bitcoin, Ethereum, Litecoin but also others like Chainlink, EOS, XLM, and more. It plans on supporting defi coins in the future. It supports 6 stablecoins, which are USDT, USDC, PAX, TUSD, DAI, and HUSD. Nexo also allows earning on fiat currencies such as EUR, GBP, and USD.
You can also stake assets on a fixed term such as a month-long for an extra 1% APR. Being paid daily interest and the ability to earn on fiat currencies are the biggest selling point of the Nexo platform that not even any of its competitors have been able to do. With Nexo, you can add or withdraw funds at any time, so if you want to you could be depositing money in Nexo for a week and then withdraw it and have earned daily interest for doing absolutely nothing except having the money in the account, which is pretty remarkable.
Nexo prides itself on what it calls its instant crypto credit lines. These credit lines allow you to borrow cash or stablecoins from 5.9% APR without the need to sell your crypto assets.
For tax purposes, this is a massive benefit of using Nexo’s instant crypto credit lines because you can use the liquidity from your assets while still owning crypto and can set yourself up to be taxed on long-term capital gains over short-term capital gains while also having cash created from owning crypto assets.
Nexo is responsible for the first crypto-backed mortgage and uses the crypto credit lines as a full demonstration of how useful they can be for massive purchases such as buying a home, car, or paying off college debt among other things.
Nexo’s instant crypto credit lines are collateralized, so there needs to be crypto given to Nexo and then the Nexo loan-to-value ratio will determine the credit amount you can receive from the collateral. Nexo offers a loan-to-value ratio of a spectacular 90% on stablecoins, 50% on Bitcoin and Ethereum, and about 30% on the other altcoins.
An example demonstrating a loan to value ratio would be 50% on Ethereum, meaning that if you had $10,000 of Ethereum, you could be given $5,000 back in your choice of cash or a stablecoin.
Nexo’s crypto credit lines are automatic approval and require zero credit checks. The credit lines can range from $50 to $2 million and the APR starts at just 5.9%.
The Nexo Card is a free debit card that allows you to use your Nexo instant crypto credit line to pay at over 40 million merchants. The card is ordered through the mobile Nexo app and can be fully managed from there. The card allows you to receive 2% cashback on every purchase and you can choose to receive it in NEXO tokens or Bitcoin and it will be automatically placed back into your Nexo account.
The card also allows you to create free additional virtual cards for online payments. It has no monthly, annual, or foreign transaction fees either.
Nexo has what it claims to be the world’s first dividend-paying asset-backed token in the NEXO token. For holders of the NEXO token, 30% of Nexo’s net profit is shared with a base dividend that is paid out to token holders proportionally to their NEXO holdings and a loyalty dividend that is paid out per NEXO token based on how long it has been in the Nexo wallet from one ex-dividend date to the next.
The NEXO token has a loyalty program that has four tiers – base, silver, gold, and platinum. They are based on the ratio of NEXO tokens held in your portfolio balance relative to the rest of your assets which are holding at least 1%, 5%, or 10% respectively. The higher tier you have allows you to get benefits such as increased APR on your crypto, stablecoins, or fiat, lower APR on your instant crypto credit lines, and a higher amount of free monthly crypto withdrawals.
The NEXO token is purchasable on 15+ exchanges and has a $2 billion market cap.
Who should use Nexo?
Those that hate typical savings accounts
Nexo is paving the way for a new generation of banking savings accounts. Those that hate their current bank savings accounts and are looking for a better alternative can look towards Nexo. The fact that Nexo has the ability for you to earn up to 12% APR even on fiat currencies like USD and EUR means that combined with the ability to withdraw at any time, Nexo straight-up laughs all over at any banking account in the modern-day era.
Nexo does a great job of showing a person that is just getting into cryptocurrency or even one that is not in it at all, a simple, quick, and free way to get your feet out the door in the crypto world. All someone has to do is transfer crypto into their Nexo accounts and you are on your way to starting having your money working for you.
Nexo is a perfect platform for the crypto maximalists that have been looking for ways to keep maximizing the number of crypto holdings in their portfolio. Those that are investing in crypto and holding for years down the future should jump onto Nexo immediately to start gaining on their crypto assets.
Who shouldn’t use Nexo?
It should be clear that Nexo is not a crypto exchange, it is created to be the next-generation platform of crypto banking. This means users that are looking for quick gains and rapid market trading should look elsewhere. Nexo offering up to 12% APR on cryptocurrencies, stablecoins, and fiat currencies is no joke and is a remarkable type of rate to be paid out for a savings account, but for one that trades religiously, it might be best to find a platform elsewhere that is more catered towards their style.
Chances are if you are looking at a Nexo review, you have some interest in the new era of digital finance. However, for the people that share no belief that digital finance is the future, a platform like Nexo may not be the right one for your investing needs. A more conservative investor may prefer to put their money towards investment markets like the stock market or real estate.
Top-of-the-line security infrastructure. Nexo has best-in-class security. With Nexo, there is $375 million in coverage for your digital assets provided by crypto custodian BitGo. The private keys given to BitGo are held in bank-grade cold storage custody and have $100 million in insurance protection. Nexo’s heavy compliance with global KYC and AML standards shows its commitment towards user security. Nexo provides its users with 2FA authentication, biometric-based identity verification, withdrawal confirmations and log-in alerts, 24/7 support, and an extensive firewall server architecture.
Interest paid out daily. The ability for one to not only earn interest daily but be paid out the interest daily with rates of up to 12% APR is something only Nexo is doing. With the ability to deposit and withdraw at any time, this makes Nexo undoubtedly a go-to even for those that do not have the means to lock up their money for months and can earn solid passive income in just over a couple of days.
Very appealing desktop and mobile user interface. Just as important as having a good platform is having one that is very easy and attractive to use from a viewing standpoint and Nexo is all of that. Both the Nexo desktop and mobile wallets each have very few different screens to be on, with your most important information being instantly displayed to you the moment you log in. Your credit lines, current interest being earned, and portfolio balance are the first things you see at login, so there is no need to do any calculations yourself.
Earning the superior benefits forces you to buy their token. While it is cool that you can earn benefits by having some holdings of the NEXO token, realistically it is a gimmick made to give Nexo another way to profit. Buying the NEXO token has its risks because it is still its own cryptocurrency which means by nature it is volatile, so if you have 10% of your holdings in NEXO just to get some extra APR, it is possible that if the NEXO token goes down it could hurt your portfolio more than if you had not bought the token at all.
NEXO token is not on most top exchanges. The NEXO token is available on 15+ exchanges, but none of them are major exchanges such as Coinbase or Binance which limits its ability to be bought.
Benefits are not available for U.S. residents. Nexo offers the ability to earn up to 10% APR if you choose to accept payment in Kind which is in the asset you have chosen to invest with, or up to 12% APR if you choose to be paid out in NEXO tokens. Unfortunately, if you are in the U.S., the option to be paid out in NEXO is not available, so as it stands right now, the most you can earn as a U.S. resident is up to 10% APR, which is still a great rate but it does not feel good to be blocked off from a feature like this. You are also unable to earn interest on fiat currencies as a U.S. resident.
Nexo vs BlockFi vs Celsius
Nexo most certainly has the edge over its competitors in some areas such as being able to be paid out daily interest and the ability to earn on fiat currencies, but the competition certainly does not make Nexo a clear choice. BlockFi and Celsius share similar visions to Nexo in terms of trying to be the leader of the future of finance and each of them has its strengths and weaknesses.
Earn Interest on Fiat Currency
Lowest Loan APR
Interest Payout Time Frame
Up to 12% APY
11+ Cryptocurrencies, 6+ Stablecoins
Up to 5 Free Withdrawals a Month
Up to 8.6% APY
5+ Cryptocurrencies, 5+ Stablecoins
1 free crypto withdrawal a month, 1 free stablecoin withdrawal per month
Up to 17.78% APY
27+ Cryptocurrencies, 12+ Stablecoins
BlockFi is the biggest name by far in terms of all the crypto banking platforms. It has the support of all the major institutions and is heavily touted by crypto pioneers such as Anthony Pompliano of Morgan Creek Digital and the co-founders of leading cryptocurrency exchange Gemini - the Winklevoss twins. It does have the slowest interest payout time frame, lowest APY percentages. and the least amount of cryptocurrencies supported between its competitors, but if you are interested in a platform with significant institutional investment, BlockFi is first in that area.
Celsius has by far the most cryptocurrencies supported among the competition. It even has some defi coin options. Celsius also has zero withdrawal fees and also has the highest interest rates across all the major platforms. It offers flexible loan terms of 6, 12, 24, or 36 months and a loan to value ratio of 25%, 33%, or 50%. Celsius also has cryptocurrency called CEL that allows you to receive higher interest rates on earning and or lower interest rates when you are borrowing. Celsius is a great bet among the three in terms of crypto lending.
Who can use Nexo?
Nexo is available worldwide and to all 50 U.S states. All of Nexo’s services including the Nexo Earn, instant crypto credit lines, and buying and selling crypto are all available worldwide.
How is Nexo able to give out such high interest rates?
Nexo can give high interest rates by lending to institutions on an overcollateralized basis only and also through the interest earned from the instant crypto credit lines. The rates remain stable because of Nexo’s risk policy to never lend without collateral.
Are my assets secure on Nexo?
Nexo has $375 million in coverage for your digital assets provided by crypto custodian BitGo. There are numerous forms of user protection such as 2FA authentication, login and withdrawal alerts, 24/7 support, and biometric identification.
The bottom line
If you’re looking to get rid of your bank savings account that is barely making you money and are looking towards the next wave of finance, Nexo is a spectacular choice. Its very easy user interface and the ability to add and withdraw funds at any time coupled with being paid out daily interest makes Nexo the most seamless crypto banking platform in existence currently. The Nexo card integration also further contributes to this.
It is not so pleasing that the NEXO token is used for so many extra benefits and also it is not easy to be bought by the average person. It is also a bummer for those in the U.S. that are unable to earn on fiat currencies or have the option to get higher interest by earning in NEXO. With that being said, Nexo has top-of-the-line security and amazing features without a requirement for the token. If you want a great entry into the new age of banking, Nexo is that.
Reclaim Up to $610/Year in Car Insurance
Here’s the thing: your current car insurance company is probably overcharging you. But, who has the time to look around for around a new company?
A website called CarInsurance.net makes it super easy to see if you’re getting the lowest price. All you have to do is enter your ZIP code and your age, and it’ll show you your options.